The COVID-19 pandemic catalyzed a surge in remote work. We propose a new macroeconomic model in which firms can employ workers off-site. Cheaper or more efficient remote work increases profitability and incentivizes firm entry. This, in turn, raises labor demand and wages which elevates business...

This paper examines how the shift towards working from home during and after the Covid-19 pandemic shapes the way how labor market and locality choices interact. For our analysis, we combine large administrative data on employment biographies in Germany and a new working from home potential...